Overseas RMB Reflux And Opening Of Mainland Stock Market

Brewing for a long time and long awaited from all walks of life in Hongkong

Li Keqiang said that the central government will actively support the development of the RMB market in Hongkong and expand the circulation of RMB funds in Hongkong and the mainland.

In addition to R-QFII, we plan to extend the scope of cross-border RMB settlement to the whole country in the future, and support Hongkong's use of RMB in domestic direct investment.

Qu Hongbin, chief economist of HSBC Greater China, said micro-blog has many new

Offshore markets play an important role in promoting the internationalization of a country's currency.

By the end of June this year, RMB deposits in Hongkong had reached 553 billion 600 million yuan, with an average monthly growth of about 40 billion yuan.

Hongkong is gradually becoming the most concentrated offshore RMB market with the largest circulation and the highest degree of marketization.

But in contrast to the accumulation of Hongkong's renminbi stock, the use of Hong Kong's renminbi is still very limited.

In fact, the R-QFII system can effectively concentrate a large number of scattered RMB funds abroad and share the growth of the mainland capital market through investment. Its liquidity and profitability will be considerable, which will help to increase the attractiveness of the renminbi.

"At present, the first 20 billion of the quota is not large, but after all, it opens another door for overseas investors to buy A shares and other products.

And the amount of money inflows is also potential. "

Qu Hongbin said.

Chen Bingcai, deputy director of the policy consulting department of National School of Administration, told the economic reference Daily reporter that the 20 billion quota is controllable, and R-QFII is the capital account opening under the local currency.

In fact, a relatively small risk channel for offshore RMB repatriation to the mainland bond market has been opened.

In July last year, the central bank issued a notice to allow foreign central banks, Hong Kong and Macao RMB business clearing bank, overseas participation in three institutions to enter the mainland interbank bond market for investment pilot.

"Among these three groups, Hongkong enjoys the most opportunities."

Zhou Xiaochuan, governor of the people's Bank of China, stressed on the same day at the forum.

Zhou Xiaochuan also said that in order to better meet the demand for RMB financing from the mainland to Hongkong and the investment demand of Hongkong investors for RMB products, the scope of the issuing body of the mainland going to Hongkong will further expand to domestic enterprises, and the scale of RMB bonds issued by domestic institutions to Hongkong will also be further improved. The initial decision has been made that the scale of RMB bonds issued by Hongkong to Hongkong in this year will be further increased to 50 billion yuan, of which financial institutions and non-financial enterprises will account for half of the total.

It is reported that last year, a total of 16 mainland institutions issued 35 billion 800 million yuan offshore RMB bonds in Hong Kong, and this year the first half of this figure has been broken, and more than 40 billion yuan.

At the same time, Zhou Xiaochuan announced that the implementation of the mainland's introduction of the Hong Kong stock portfolio ETF (Exchange Traded Fund) has been completed. The biggest technical problem, the guarantee of liquidation and settlement, has also been solved. The time to launch the Hong Kong stock portfolio ETF in the mainland is ripe.

"The Hongkong stock exchange in the mainland ETF can bring hundreds of millions of new investors to the Hongkong market."

Qu Hongbin said.

The announcement of a series of new measures means that the circulation of funds between Hongkong and the mainland is further deepened.

However, financial expert Zhao Qingming (micro-blog) told the economic reference daily that the opening of the reflux channel has solved the problem of preserving and increasing the value of the RMB deposited in Hongkong. However, it is not healthy to solve the problem of RMB going abroad for a long time through the way of capital repatriation. This internationalization is also "lame", and the real internationalization of RMB must be both the capital providers and the users in the offshore market.

He pointed out that at present, more can be encouraged to encourage the use of RMB in the offshore market as a financing currency.

"Offshore markets should not be too anxious and big, but to be perfect."

Zhao Qingming said.